[SustainableTompkins] Fwd: Green Power Plant in CNY
Cnielsen56 at aol.com
Cnielsen56 at aol.com
Fri Aug 18 16:56:43 PDT 2006
How about now?
In a message dated 8/18/2006 12:20:29 P.M. Eastern Daylight Time,
joel.and.sarah.gagnon at lightlink.com writes:
The title is intriguing, but there is nothing in the message field for this
post.
Joel
Company wants to build “green’ power plant in CNY
Syracuse, ESF, Siemens would be partners. It could cut city's power bill.
Sunday, August 06, 2006
By Greg Munno and Nancy Buczek
Staff writers
The Siemens Corp. plans to build a "green" power plant in the city of
Syracuse and sell the power to the city and school district at rates lower than
they are paying now, according to the city and company.
If all goes according to schedule, the plant could be built and producing
power within 18 months.
The city estimates it will save $1.2 million per year on its electricity
bill. It also anticipates being able to capture federal and state money meant to
reward green energy use and sell the storm debris the city collects to the
plant. It even says that the plant could sell some surplus electricity for a
total estimated benefit of $150 million over the next 20 years.
The State University College of Environmental Science and Forestry is also a
partner in the project. The school will help Siemens acquire fuel for the
plant, which will extract energy from willow trees through a process called
gasification.
ESF will also buy some of the power from the plant, build a research lab and
classrooms at the facility, and create a new bachelor's de- 9
gree program in renewable energy systems, which could start as soon as fall
2007, according to ESF President Cornelius "Neil" Murphy Jr.
Several sites are being considered for the plant, with the most likely being
a 4-acre undeveloped plot between Erie Boulevard and Interstate 690 slightly
west of Thompson Road, according to Jim Olcott, a Siemens account manager
working on the project.
The plan calls for Siemens to shoulder the cost of obtaining land for the
plant, building the facility, buying fuel and running the operation, according
to the city and Siemens. "There would be no up-front cost to the city at
all," Mayor Matt Driscoll said.
The city would sign a 20-year contract with Siemens, agreeing to buy a
certain amount of power from the plant at a fixed price.
That price hasnot yet been determined. The price must be set high enough
that it makes sense for Siemens to build the plant, and low enough that it will
guarantee the city a cost savings over what it currently pays for power.
Whether or not a price acceptable to both parties can be found will determine
whether the project will become a reality, Olcott and Driscoll said. But both
are confident they can strike a deal.
"We are doing our due diligence now and studying exactly how much power the
city will need and what size plant we will build, but our initial estimates
are that we can save the city about 30 percent over what they are paying now,"
Olcott said. "We should definitely be competitive on price, on top of being
environmentally friendly.
"And," he added, "with ESF's involvement and the fact that we would be
purchasing willow from area farms, there's tremendous potential for spin-offs."
There are some risks for the city, but they seem remote, said Paul Thompson,
the city's energy coordinator. If the city agrees with Siemens on a price
for power and then energy prices unexpectedly fall, the city would be locked
into the higher price. "But everyone expects energy to continue to go up, and
one of the things I really like about this plan is it allows us to know our
future energy costs with a high degree of certainty," Thompson said.
Any final agreement with Siemens would have to be approved by the Syracuse
Common Council. The council's Public Works Committee will hear a pitch on the
proposal at its meeting at noon Wednesday.
In the short term, the council will be asked to approve a resolution asking
Siemens to move forward with plans for the plant. The resolution itself would
expose the city to some risk. It would obligate the city to repay Siemens
for the cost of continuing to develop the proposal if Siemens meets a series of
benchmarks but, for whatever reason, the city decides not to sign on to the
final deal. That cost would be capped at $345,000, said Public Works
Committee Chairman Bill Simmons.
"I think that is a reasonable request, since we are asking them to do the
work," Simmons said. "I am very much in favor of this proposal. We have to find
a way to save on energy costs and have more control over our energy supply."
The proposedplant's design is considered environmentally friendly mainly
because it would use willows for fuel. Willows grow quickly they can be
harvested within three years of planting and therefore are a renewable, sustainable,
source of energy.
The willows also take the same amount of carbon dioxide, a greenhouse gas
that contributes to global warming, out of the air when they grow as they put
into the air when they are used for energy. That makes the plant "carbon
neutral," according to ESF's Murphy.
Another green technology in the plant is the gasifier, which extracts gas
from the wood. The gas is then burned to fire turbines or an engine to produce
electricity. Gasifying the wood instead of burning it is both cleaner and
more efficient, said Tim Volk, a research associate at ESF.
The plant's exactsize has yet to be determined, but the current proposal is
for a 10 megawatt facility, which would take care of the majority of the city
and school district's electrical needs. If a 10 megawatt plant is built, ESF
estimates, the carbon reduction would be equivalent to removing nearly
40,000 cars from the road.
The project is unlike any Siemens has done before, but Olcott says there is
solid precedent for it. In 2001, Siemens built a traditional gas-fired plant
for Monroe County under an agreement similar to the one Siemens seeks with
Syracuse. Siemens has also built a gasification plant in Georgia that extracts
gas from carpet scraps.
"The business model and technology we are proposing for Syracuse are all
proven, but have never been brought together in this particular combination,"
Olcott said.
Using wood for fuel does create pollution, no matter how efficiently it is
done. The Onondaga County Resource Recovery Agency was banned by the state
from burning wood mulch and yard waste when its trash incinerator opened in
1994. The incinerator also produces energy, with a capacity of 39 megawatts.
Ken Lynch, regional director for the state Department of Environmental
Conservation, said the new power plant's developers will have to obtain one or
more state environmental permits before the project can move forward. Lynch said
the state has no outright ban on the burning of wood in power plants. But he
said the state is concerned about the potential nitrogen emissions, which
lead to acid rain.
Olcott said Siemens will work closely with regulatory agencies like the DEC
to ensure the plant meets environmental standards.
The effort tobuild the plant is the latest in a series of green initiatives
by Driscoll. The mayor hired Thompson in 2002 to lower the city's energy use
and costs, and since then the city has replaced its street and traffic
lighting systems, updated fixtures in the parking garages and in city hall, and
become smarter about reducing its energy use at times of the day when power is
particularly expensive.
Thompson estimates those efforts and others have saved about $1.2 million
since 2002, and cut carbon emissions by about 11,000 tons a year. Last year,
the city won two prestigious environmental awards, the Sol Feinstone Award and
the U.S. Environmental Protection Agency's Climate Protection Award. In fact,
the city has been so successful in reducing energy usage that Siemens is
worried a 10 megawatt plant may be too big, Olcott said.
"We are starting to gain a national reputation as a progressive city on
environmental issues," Driscoll said. "It's something we can capitalize on in
many ways."
Staff writer Mark Weiner and librarian Bonnie Ross contributed to this
report. Staff writer Greg Munno can be reached at 470-6084 or gmunno at syracuse.com.
© 2006 The Post-Standard. Used with permission.
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